On The Dynamics Of The Israeli-Arab Arms Race
AbstractThis paper investigates the causal relationships between the military expenditures and military burden of the four major sides of the Israeli-Arab conflict, namely, Egypt, Israel, Jordan and Syria over the period 1960-2004. We utilize both the causality test suggested by Toda and Yamamoto (1995) and the generalized forecast error variance decomposition method of Pesaran and Shin (1998). Our findings suggest weak causality that runs usually from Israel’s to Arab’s military spending. The strongest links are between Israel and Syria that are still in a state of enmity. No causality was detected between Israel’s and Jordan’s military spending.
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Bibliographic InfoPaper provided by Ben-Gurion University of the Negev, Department of Economics in its series Working Papers with number 0809.
Length: 31 pages
Date of creation: 2008
Date of revision:
Arms race; Middle East; Israeli-Arab conflict; Causality; Generalized Forecast Error Variance Decomposition;
Other versions of this item:
- H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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